Remain optimistic for further acceleration in consumption: Dabur

FMCG major Dabur said domestic demand conditions remained steady during the second quarter despite a volatile operating environment marked by renewed geopolitical tensions in the Middle East, persistent inflationary pressures across various commodities and deficit rainfall.

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“We remain optimistic for further acceleration in consumption, supported by the upcoming festive season, while continuing to monitor the evolving geopolitical and inflationary environment,” the company said in the second quarter FY2026-27 update.

The India FMCG business sustained its growth momentum and is expected to accelerate to double-digit growth, marking its strongest performance in recent quarters, Dabur said.

Home & Personal Care (HPC) business is expected to record double-digit growth, it said.

Hair Oils and Shampoos are expected to deliver high-teens growth, led by robust performance in both perfumed and coconut hair oils, reflective of healthy consumer demand. This marks the fourth consecutive quarter of double-digit growth, Dabur said.

“Oral care is expected to post mid-single-digit growth on a high base, driven by continued investment and franchise strength. Home care is expected to register high-single-digit growth, while Skin care is expected to grow at double-digit growth, reflecting strong brand equity across our portfolios,” it said.

Healthcare is expected to record mid-single-digit growth, while Food and Beverages business is expected to record mid-teens growth, the company said.

Dabur said its emerging channels comprising E-commerce and Quick commerce are expected to report strong growth momentum led by our continued investments and focus on an omnichannel distribution approach.

Modern Trade continues to grow at double digits. General Trade continued to grow across both urban and rural markets, with rural continuing to outpace urban, led by continued efforts under Project Saksham, it said.

Dabur said its international business, despite severe headwinds in the Middle East, is expected to post high-teens growth in INR terms, with key markets like Egypt, Turkey, USA, Bangladesh and UK, each recording strong double-digit growth in INR terms.

Inflationary pressures continue to remain elevated, particularly in HPC and OTC & Ethicals. Operating margins were impacted by inflationary pressures during the second quarter; partly offset by calibrated price increases and ongoing cost-saving initiatives, it said.

Dabur said it is focused on delivering sustainable, profitable growth through disciplined execution of its growth strategy, enhanced cost competitiveness and digital capabilities.

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